In an increasingly volatile environment; where risks are becoming ever more complex — cyber attacks; supply chain disruptions; extreme weather events — companies can no longer afford to view insurance as a simple cost center. It is time to embrace a strategic approach to risk: Total Cost of Risk (TCOR).
What is TCOR and why does it really matter?
TCOR represents the total cost a company incurs to manage its risks. This includes not only insurance premiums; but also:
- Uninsured losses (excesses; self-insured events)
- Risk prevention and management costs
- Internal administrative costs (policy management; claims; brokers)
According to ERA Group's experience; focusing solely on insurance premiums means ignoring up to 70% of the real cost of risk.
Why a TCOR approach is a competitive advantage
Implementing a TCOR strategy allows decision makers to transform risk from an unpredictable cost into a lever for efficiency; business continuity and EBITDA improvement. The concrete benefits?
- Cost reduction of up to 15% within 2–3 years
- Streamlining of internal activities (up to 40% reduction in administrative costs)
- Faster claims management (up to 50% time saved)
- Data-driven decisions thanks to RMIS (Risk Management Information System) tools
Digital tools and intelligent solutions: RMIS & ART
ERA Group supports companies in implementing RMIS to:
- Monitor policies; claims and KPIs in real time
- Automate renewals and simplify document management
- Activate dashboards for an integrated view of risk
At the same time; Alternative Risk Transfer (ART) solutions allow companies to rethink the way risk is insured and retained; creating more efficient and sustainable strategies.
Real case studies: concrete results
- Large-scale retail group with over 500 stores in Italy: complete reorganisation of the insurance program; creation of an internal brokerage company → –47% annual costs; €486;000 in savings
- UK real estate company: increase in excess and dedicated claims fund → 15% immediate savings on premiums; without reducing coverage
- French video surveillance company: total cancellation of the policy for transported goods → 97% annual savings
- US contractor: creation of a captive → £390;000 annual savings; long-term insurance stability
How to tell if it's time to review your insurance strategy
If your company answered 'yes' to two or more of these questions; it's time to explore a TCOR optimisation path:
- Have premiums increased in the last 24 months?
- Have deductibles been strategically reviewed?
- Are uninsured losses impacting EBITDA?
- Do you know how much your TCOR affects your turnover as a percentage?
Why choose ERA Group
ERA Group is not a broker; but a strategic and independent partner with decades of experience in cost and risk management in sectors such as real estate; retail; manufacturing and services. Our approach combines:
- In-depth analysis and TCOR diagnosis
- Modelling of risk retention scenarios
- Implementation of RMIS platforms
- Insurance governance and program renegotiation support
In a world where risk cannot be eliminated but only managed; competitive advantage belongs to those who have full visibility.
With ERA Group; you can transform risk from a hidden cost into a strategic lever.
